Gold Coins Vs Gold Bullion Coins

Krugerrand are a great addition to your investment portfolio. Unlike bullion bars, each coin has unique numismatic value. For example, a Saint-Gaudens gold double eagle has the profile of Augustus Saint-Gaudens on its obverse side, while a Krugerrand has the image of a prancing springbok antelope.

As a result, premiums are high for these rare coins. The premiums can be used to boost your precious metals IRA or offset losses in another account.

Precious metal

Gold bullion coins are minted in a variety of weights, and their purity is guaranteed by the issuing government. They are usually sold for a premium over the market price of the metal on commodity exchanges, to cover costs associated with manufacturing, storage, and distribution.

Bullion coins are popular investments for investors concerned about inflation, and they are often perceived as safe-haven assets. They may experience a temporary dip in value, but their long-term price trend is generally upward.

In addition to precious metal bullion, investors can purchase gold rounds, which are privately minted, non-legal tender medallions in the size and shape of coins. They tend to sell for a lower premium than coins, as private mints are not subject to the same financial burdens and taxes that sovereign governments must shoulder. They can also be purchased encapsulated in tamper-proof cases that provide a guarantee of condition. They are often called “slabs”. These slabs display the coin’s unique serial number, archived in a database.

Diversification

Gold has historically had a low to negative correlation with stocks and bonds, making it an effective way to diversify your portfolio. It is also a tangible asset that holds its value over time and does not depend on the performance of an individual gold mine, so it can provide you with a level of stability in times of economic uncertainty.

The South African Mint has earned a global reputation for its eye-catching designs and exceptional craftsmanship. The company has produced numerous bullion coins, including the 22ct Krugerrand coin that was first introduced in 1967. The coin was designed to promote South African gold to international markets and to make private ownership of gold possible for individuals. Its name is a combination of the name of Boer statesman Paul Kruger and rand, the currency of South Africa. The coin’s obverse features the likeness of Kruger and its reverse features a springbok antelope running through an ore field.

Control over your wealth

Imagine you have a pocket full of fast depreciating currency and a gold coin. If you needed to pay for something which the merchant accepts either currency or the coin, what do you choose? Many people who understand these issues prefer to store a small emergency reserve of gold coins.

The smaller size of a gold coin, makes it easier to sell in the event of a need. They are also far more easily transported than a gold bar, and offer flexibility by allowing you to split your holding in smaller units.

In addition, unlike paper financial assets (stocks and bonds), the ownership of physical precious metals is fully private. There is no requirement to report them to any central agency. For these reasons, some high net-worth individuals prefer to invest in coins rather than bars. This is a decision that is entirely personal to the individual. You will often find that a premium over the spot price for a coin is lower than for a bullion bar.

Security

For those seeking the most cost-efficient way to buy gold, bullion bars are an excellent option. However, they are not as easily identifiable as coins. Additionally, gold bullion bars require a sample of the metal to be extracted and assayed in order to verify their purity. This process significantly increases the premium of the bar.

Fortunately, new anti-counterfeiting technology is making it easier to protect yourself against fake gold. One of the most popular is micro-engraving, which adds a security mark to the coin’s surface that can only be seen under magnification.

Other security features include hologram seals, which can only be authenticated by a special scanner. These are typically used for graded coins and help to prevent tampering. Some grading companies also use UV light to check for tampering, which helps to confirm the gold’s authenticity. These methods are non-damaging to the gold and are very quick. They can often be performed on site or at your chosen storage facility.